CBN Holds MPR at 26.5% Amid Rising Inflation Risks

The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 26.5% in response to increasing inflationary pressures and fiscal risks as Nigeria approaches a politically sensitive season with heightened campaign-related spending ahead of the 2027 general elections. CBN Governor Olayemi Cardoso defended the decision, emphasizing the need to contain inflation and stabilize the exchange rate amid global economic tensions.

As of April 2026, Nigeria's headline inflation climbed to 15.69%, with food inflation sharply increasing to 16.06% due to high transport and logistics costs. The CBN's strategy includes retaining a cash reserve ratio of 45% for commercial banks and maintaining an asymmetric corridor around the MPR.

Economist Bismarck Rewane described the current environment as requiring vigilance rather than panic, while Muda Yusuf noted that inflation is driven by structural supply-side factors. The CBN's reforms have reportedly helped build buffers against economic shocks, with gross external reserves rising to $49.49 billion as of May 15, 2026.